tv On the Move Bloomberg February 17, 2014 4:00am-5:01am EST
>> get ready for renzi. the mero florence meets italy's president this hour and could be named prime minister. >> japan growth disappoints while china's revenue credits boost outlook. >> and "12 years a slave" wins big at the baftas. we will speak to the official jeweler of the awards. good morning, everybody. you are watching "the pulse." we are live from bloomberg headquarters in london. >> also coming up, making a
splash on the catwalk. weekr makes its fashion debut. hear from its ceo about taking the british brand global. >> and how not to get burned by a secondhand car. we will talk to an entrepreneur using the clout to stop you from getting ripped off at the dealership. >> we begin with the political shakeup in italy. napolitanomeet with this hour. it could mark the first step towards a new italian government. hans nichols is back from rome with the latest. what are the first hurdles for renzi? >> it has to be the senate. renzi has a complicated task. he needs to form a cabinet and allocate all the positions and then he needs to face both votes of confidence in both chambers. expectt 25 minutes, we him to be summoned by the president. we expect the president to making the offer to formally form a cabinet and a government. then he needs to figure out who
gets what positions. he needs to have a confidence vote. in the senate, it could be more of a challenge. it is not just personnel. what we saw in the negotiations over the weekend were that the parties want certain programs. assurancesertain that will be put through. in all of this, there are some deadlines. they are not real deadlines, but in five days time, there is a g-20 finance ministers meeting in sydney. will the government be in place to pick a finance minister, dispatch him and sent him to sydney to do italy's bidding? >> let's talk about mr. berlusconi. how is he going to play in all of this? >> he has been the wild card in all of this. as he so frequently is. he was consulted over the weekend on what sort of role he will play. he said he wants to be part of a responsible opposition and was very clear that he wants to work
with renzi on reforming the electoral law. atwood lead italy potentially -- that would lead italy potentially more towards a two-party system. if it is done, you could see a split between berlusconi and renzi. then you could have snap elections and calls for renzi to be a legitimate elected member of parliament avenue -- as prime minister. he would be the third prime minister who was not democratically elected. about italy'serns political stability if you keep having anointed prime minister's. >> we could say that the two-party system does not generally guarantee particularly effective government. we will leave it on that note. hans nichols joining us from berlin. >> anything is more effective than italian politics. even as botswana. >> not as entertaining. >> japan's fourth-quarter growth
has fallen ahead of a planned sales tax hike. n, it begs the question, is abenomics working or will it work? >> this is a huge miss. talk about the bank of japan easing a little bit more. i think it is getting crazy. this is what the japanese consumer faces right now. no wonder consumer confidence has been dwindling. they expect a weaker yen. are also face wages that going nowhere. inflation, the lack of wage growth. effectively, the japanese are getting poorer. >> in april, this sales tax hike is coming through. gettingy, we are not the export boost you thought you would get from the yen. you have got to be thinking that the numbers go further in the wrong direction. >> this falls to abe. he has got to take the record profits and pass them to the consumer erie right now, -- to the consumer.
are not., they japan has a massive demographic problem. it is a huge issue. by 2035, over one third of the population will be under 65. getting more about females into the workforce. 2012, there was just over a 60% participation rate for females. for men, it is 18%. you have a dwindling workforce. they need more people in work. this comes to abe to implement the structural reforms, not the bank of japan. >> more integration just to get people -- >> that gets to the whole issue. >> women-omics. >> jonathan ferro with the latest on japan gdp. google has bought startup afterogin just two months
the company was registered. elliott gotkine is in tel aviv with more. walk me through what this company does and why it is so valuable. addsat the company does is an extra layer to the authentication of users when they go on particular websites. instead of inputting a normal last word, and i'm not sure you are going to tell us what that is normally, what a slicklog isenabled website would do send out a sound that is imperceptible to the human ear but which your phone can pick up the your phone will hear that sound and it will tell the website that you are who you say you are. it will then allow you to log in. that is what the company does. we do not know what google has paid for the company. it has not been revealed. a spokesman of google says this is very early stage startup,
more like an acui-hire. part acquisition, art hire. this company was only founded two months ago. they came out about five months ago and have no investors or patents. they have no customers and they have not had any financing either. financing,y stage of very early stage company. clearly, google sees some potential there. the three founders of slicklogin are graduates of the israeli defense forces cyber security unit. they will start work today in the cyber security division there. your bad day to start first day on the job. >> not bad at all. this is not google's first is really acquisition either. >> it is not. i am not going to put you on the spot and ask you to name the other three.
one of them, google bought for right about $1 billion last year. quicksy and lab pixie. it is a bit of a land grab some of the top tech companies in the world. google, microsoft, intel, and others are in israel buying up companies that are at very early stages. much more advanced than what we saw with apple's acquisition last year or with, for example, facebook's acquisition of lenovo. companies, a lot of potential here in israel. they are buying companies, from the smallest ones to the biggest ones. one imagines this is something we will see more of throughout 2014 and beyond. >> thank you so much.
let's stay with tech. angela merkel plans to step up calls for an eu internet. she is meeting with the french president in paris on wednesday. david tweed is in berlin. what does ms. merkel want? >> it is very much from ideas that were floated last year after the nsa spying scandal. particularly sensitive after her own phone was tapped. she is suggesting an internet where e-mails do not have to go via the u.s. she was peeking at a weekly podcast, talking about the meeting she will be having with the french president in paris on wednesday. this and what she said. to what she said. >> we will talk with rants about how we can maintain a high level of data protection. we will talk with european providers about security for our systems so that one should not have to send e-mails and other
information across the atlantic. >> she did not go as far as naming any providers she might be talking to, but we do know that deutsche telekom, partly owned by the german government, has been urging there should be and we had anups interview with the co-chief executive officer of sap, who said that they are working with the european commission to come up with standards for the cloud so that we can have european-wide standards. that the machine was especially critical to google and facebook. what did she exactly say? >> once again, talking about data protection and the difficulty of getting european-wide regulation in place because many countries have different standards of data protection. what she did was took quite a at google-- a swipe
and facebook, both european headquarters in ireland. saying that some providers, like these two companies, will be attracted to the countries that have the lowest data protection rules in europe. nothing like the sort of data protection that exists here in germany. >> thank you very much indeed. david tweed joining us from berlin. >> here is what else is on our radar. allopian airlines says passengers and crew on the hijacked airline are free after the plane made a forced landing in geneva. police arrested a man who will remain unidentified. to buy a u.s. set biotech firm. the deal would expand their immunotherapy research. they have not disclose financial terms. the12 years a slave" won
>> japan's growth is trailing forecasts. it grew less than half the estimated pace in the fourth quarter. >> this figure ready much highlights the risk -- pretty much highlights the risk. we are in a situation where we have grown an awful lot in the japanese economy and i am wondering how much of it is sticking. >> i would not worry too much about this. the reason for my saying this is basically this negativity was caused very much i this massive influx that we have experienced, considering we have no nuclear reactor that is moving. massive imports and there was weakness on the emerging nation's exports. if you look closely into the
numbers, we are seeing the transition of growth factors moving away from the public sector and into the private sector. we are clearly seeing this. trend is bad. the it is on the left side of the bell curve, but i do not think it is as bad as people deep ache. -- depict. >> you are saying abenomics is working. i wonder what the sales tax increase will do. you think that, by the end of the year, you will be on a good track? >> january and march will boost private investment. there will be a demand before the consumption tax increases in april. in april, june time, yes, there will be a very big attraction. we estimate more than 4% decline . after that, we are likely to see capital expenditure come back. in my opinion, that is the single most important thing in japan. if that comes back, earnings will come back and investment will come back and then the
wages will come back. you are seeing the whole cycle of consumption that will take place towards the end of the year. this is the most important factor that we have to watch carefully. >> i am curious to know why you think that. there is very little evidence at the moment that corporate japan is looking to invest significant quantities of money. you just do not get that vibe at the moment. we have seen that in certain areas of the export community, but it is not widespread. why are you so convinced that we will see rising? >> it is now or never. or the first time in 60 years, we are walking away from inflation conditions. today, you saw the nominal gdp. secondly, japanese companies are at a very stretched limit of replacement -- replacement demand. a have been withholding investments from after the lehman crisis for such a long time. conditions where it is dangerous if they do not reinvest, things like software, and even on the factory automation side.
int we are seeing right now production facilities in asian areas, the fact of the matter is that the cost of wages in those areas is also rising. demand is going to kick in as well. there are various factors which enable companies to push for capital expenditures at the end of this year. as you point out, we have to wait and see. for the government to come up with regulations that would induce the corporate to do so. 50-50 people had coming on the program and pointing out the fact that abenomics is not working and some people are a little bit more optimistic about the future for japan. is there an overhang? or is this also because of the emerging market correction? >> absolutely. external factors are something that could wash away abenomics easily. really onlyng that works in abenomics is the yen weakening.
arrow, very much into public formation, i have doubts whether it will work because it is a low multiplier. with the reform, it is a very painful one. we have to see the long-term basis to see if it works or not. the biggest culprit of the japanese economy right now, the risk involved, is definitely an external factor, be it the emerging nations or risk emergency in many foreign affairs. that is probably the biggest risk that abenomics is facing. >> do you think there will be a -- a ton -- a 10 station emptation for the government to push this farther? we see how it is working and we make a decision further down the road or do you think there will be a desire to hit it even harder? >> two years ago, i probably would have said the former. now i am much more inclined to the latter scenario. there is a much better
connection with the boj and the government. the majority of the economy's out there did not inc. that thinkwould be -- did not there would be something that takes place with the tax increase in april. >> overall, what is the next timetable like? we have the sales increase in april. the month after that, will that be a crucial indicator? >> absolutely. i think the july-september figure is the most important one. we know we will have a negative reaction to the january-march growth that we see. july-september, looking at corporate activities will determine whether there will be moves to the growth forecasts of the year for japan. i think that is the single most important factor we should be looking at. >> thank you for your time.
always a pleasure to speak with you. come, these boots were made for strutting. ceo oferview with the hunter. >> and how the british brand is pushing for global growth. also coming up, heading to the slopes in style is not just for the 1%. why it is easier for anyone to get on board a private jet. ♪
>> welcome back to "the pulse," live on bloomberg television, radio, and streaming on your phone, your tablet, and bloomberg.com. bank saysld's biggest it will consider acquisitions in the middle east. that is part of their plan to boost earnings from the region by 60% this year. it plans open retail branches in kuwait, saudi arabia and uae. >> peninsula hotel and resorts is said to be attracting -- occidental hotels is said to be getting bids. it is said to have garnered interest from the likes of a.m. resorts. as $700etch as much
million. ledand the lego movie ticket sales in the united states and canada for a second week. the animated film from warner bros. collected more than $48 million, favorable reviews, and a lack of clear competition has certainly helped. an asset check. jonathan ferro is at the touchscreen with the latest. >> no trading in the equity markets in the u.s. trading in europe ok. uninspiring session outside of the ftse 100. a touch of losses on the dax and the cac 40. the action is outside the equity markets. here in the bond markets, look at italian debt. the yield on that has hit the lowest since 2006. what instability? do investors like it this way? you know that one
over. elsewhere, it is a quiet day. one euro buys you roundabout $1. 3708. all of this is just the calm before the storm. a busy week. we have eurozone pmi, china pmi, thing coming in minutes, bank of england unemployment, does that matter any more? to spend a lotg of time talking about this over the next few weeks. thank you very much. >> it is going to be good. coming up, just the right measure of glitter, gold, and glamour last night as the stars showcased at the baftas. and coming up, tripling the energy efficiency of your home. the latest breakthrough in green technology. do you want to follow us on twitter? we would like it if you would.
the data adds to better than forecast to trade and suggested ble tohina may be a limit the scale of their economic slowdown. 12 years a slave cleaned up this weekend. it is the best film and won the best actor award. millions of people tune into the event every year. >> is the question we are going to ask of the official jeweler sponsor. i for coming in. give us a flavor of what you get out of it. >> we get a number of things. we have done this for six years and the longer you do these things, the more value you get
and the customer begins to see evolved with this tremendous event. oldest luxurythe brands around and we are a big supporter of creativity. we marry up very well with the organization and celebrate the creativity. and we arepartner up looking at the sorts of organizations that share values. >> you do the pre- part. >> our flagship is on bond street and we attend the award ceremony with our guests.
we attend the dinner afterwards and it is a long night. >> you have many clients. your kind ofy jewelry, there are not that many people around the world. and this to the party is relationship management >> correct. we have some amazing clients aound the world and we have u.s. and japanese business. we have a business in london. they are considering the loyalty. >> give us a sense. and theyuxury here it is a luxury
endorsement. you can spend on making things more beautiful. is this still true? what's it depends on the brand and what you are trying to achieve. righty thing you said there is the right celebrity. maren chose a paragraph our earrings to wear and was given a fellowship award. greats great and she is a value. she is british and that is important to us. it is a great value. i went through my notes and looked at my research on my company. you are making a.
big push. how important is an online presence to them? i get the brands that sit in the middle of the spectrum. >> our view on this is that it does not matter the usage on the market. it is not say that people are going to spend on a piece of jewelry. that is not the case. it is a case where we can represent the brand and this is an important marketing tool. do is come will online and spend a lot of time around jewelry. they are researching.
we have seven stores around the there will be many places around the world where you cannot access the brand. the online piece becomes very important. we do transactions online. the same time, as i said before, they use it to do research and come into the store. people come into the store and they already know what they're looking for. we start to talk about storm earrings and -- >> right. ok. >> other users are saying that they do not expect that much online and it is a research tool. i think about it. >> is a very strong marketing tool. what is great about it is that
-- as you, as you -- there are so many stories you can create online. you did check on a piece of jewelry. away to the designer who made the jewelry and go upstairs to the workshop. it is a much richer and engaging brand of experience. that in old media. not to say that meet isn't important. what absolutely right. >> more normal jewelry recoveries we get to see this as the next generation coming. that is how they consume media. take hernterested to temperature on how businesses are performing and what trends you're seeing. how is it working? >> we have a digital presence in china and there is the chinese
to make it in. we see them coming. yeah, no, so, it is a question of good levels of chinese traffic coming into our stores and that is encouraging. we have not seen any particular slowdown. and, the business is robust. so, -- so, i do not see any particular slowdown overall at the moment and the luxury market is growing. it is single digits and double-digit. have emotional economies -- growingentally companies. high-profilemost
bond industry and we have been there for 160 years. london is the most international city in the world and he will continue to visit. travelers go through there. thank you so much for coming on today. managing director. out iner has stepped style for london fashion week. spoke to the chief executive and we will talk about where he fits in and the opportunities for this brand. >> we think there's an opportunity and the u.s. is amazing, and terms of sales. u.k. has always been our home it. we have great interest from china, japan, korea. we think that we have a great global potential. not opened retail stores
yet. we will be announcing our first retail store and that will be exciting and the start of a direct-to-consumer website, as well. you the full interview later on. take a closer look at hunter. >> it is interesting and if i told you that 4-iron was about hatchbacks, you'd be surprised. that is what they are going to do for 150 years. what is interesting to me is how the product line rolls up. you see, it is quite an offense and it rained here a lot. they're going to make the appropriate apparatus for that. there is a lot of color and not the stereotypical british
heritage. >> let's talk about the celebrity that surrounds hunter. they made the brand very famous for the story. making ane that were appearance. >> she turns up and you know this matters. we caught up with the ceo. these issues. she can keep them on. question ofhe celebrity endorsement being enough. of the the question right celebrity. this is taking an exclusive rant and really generating massive scale. when you take british shared it and try to create massive scale, there is contradiction and not
>> good morning. we all know that it is easy to get ripped off when you are buying a second hand car. one entrepreneur think she has found a way to stop it. she has a website that tracks the vehicle history and stores it. mo company is called toriety. >> buying a car can be an exact -- expense of and one entrepreneur decide to shine a light. >> i test drove it and it seemed perfectly fine. something major went wrong with the car. having had this history, i it is not a record worthy.
available and it is in a variety of places. >> she has launched a website document owners can all the work that is done on a car and it creates an autobiography. it is stored. and this is aing car business. do you know your way around a car? >> no. not at all. if you show me under the hood, i might get confused. a lot of things you learn in business are transferable. >> who makes money out of the business model? reminder. you a the garage just to verify. business thatnted she says is behind the curve. now all she needs is critical
mass and does she need funding? >> we are hopeful and we are at business that is transforming communication. anna edwards, bloomberg. flex let's continue the conversation on entrepreneurs and we are joined right the managing director at startup boot camp new technology accelerator think tank. it's great to have you on the program. what your about company does and we talked about entrepreneurship being the backbone for gdp and 5-10 years. andneed accelerators mentoring and this is what people are asking for. >> you described it. them, over the space
of three months, intense mentorship. it could have taken a year. it takes three months. the key thing is that we use a large number of people who know the industry and no funding and we give them access to different things. case, we need people from the financial industry and we need people who have their own startups and no how difficult it is and can share advice. we need people who are open to funding. typical and it is at the end of november, we have 300-400 overseas. our measure of success is if these startups get funded. >> this is one of the great things that london has to offer. technology and the google campus on our right hand side. we have the city of london.
tension where they meet and we need to push it harder. give me a status report. the relationship is working to presently well and it is getting closer. maybe we can pick up one of the words that we heard earlier, disruption. people always talk about toruption and the disruption put the bank out of business. most startups want to work with the banks. services are targeted to an audience that are not covered by the banking industry and banks have started putting innovation programs in place to spend what is going on in the outside world. startups are more mature, and the since that you have more people and not two guys in the garage with the next big thing. they have the problems of the industry and try to find
solutions. there is a lot of players in this market who are bridging between the two and providing a bridge and a service, a language, maybe, to translate. people explain to startups how difficult it is to sell into a bank and what they need to be aware of. wider ecosystem that is building and includes the banks, academics, the vendors, and the organizations like ours that provide very specific services. >> thank you so much for joining us. camp.p boot >> we will look at the latest breakthrough in green. that is right here on the pulse.
glazed window. this is when double glazing started. anddifference between this this, love bring this into flame -- frame. what is the difference to my home? >> there is a number of factors at play. the basic principle of the differences between the more modern window is an increase of the size of the gap between the size of the -- between the glass. to prevent the passage of heat and makes it more efficient. is mores on the outside clear and allows more of the sun 's energy to pass into the home. other panes of the
as a reflective coating. >> we have year to talk about sheets of glass and we want to know about the impact that this a carbon footprint and energy efficiency for homes, as well as government schemes. should we be think about this are changing our boiler? give me the economic story. >> we offer a number of projects. condensing the boiler is inefficient product to someone who does not have a boiler and the amount of fuel you can save is significant. double glazed windows will be more and -- >> what is the return? dependent on the fuel
source that the consumer is using. you are talking, and realistic terms, of hundreds of pounds and it can scale up, depending on what temperature they run their homes that. >> is government doing enough? government is trying to manage our carbon target. are they doing enough to push these type of things? >> i think there is always more that can be done for the consumer and it benefits the energy bills and the environment. i would like to see things like ofsideration to a reduction value added taxes. that a lowncommon value added tax is enjoyed. thank you for joining us. >> thank you for that.